Film Industry

US film industry

The US film industry is the largest in the world, accounting for a share of 45.5 percent. It grew by 8 percent in 2003 from USD31.7 billion in 2002 to USD34.3 billion. The popularity of US films holds the key to box office revenue growth in most regions outside the country. More movies are being released than ever before, giving customers more choice at cinemas around the world. The number of films increased from 467 in 2002 to 473 in 2003. Five films crossed USD100 million in revenues and 23 movies exceeded USD50 million in revenues, according to media statistics.

Europe film industry

Driven by the increased worldwide demand for content along with the growth in DVD/video purchases and rentals, the European film industry grew by 9.5 percent in 2003 to reach a value of EUR15.68 billion compared with EUR14.32 billion in 2002. Revenue from DVD/video purchases and rentals accounts for 68 percent of the total revenue in Western Europe. As the time between the release of a film in theaters and the subsequent roll-out of video cassettes and DVDs shortens, so revenue receipts increase.

However, decreasing admissions in Europe indicate that consumers are slowly losing interest in watching movies in theaters. In Europe, France has the highest admission figures at 174.2 million. The European Audiovisual Observatory estimates that admissions are down 5 percent across the 15 countries that make up the EU. The greatest fall was in the German film industry, which saw admissions drop by 9.1 percent.

Europe will be the fastest-growing section in the coming years, driven by new screens, refurbished cinemas and digital technology that enhances distribution. The success of DVDs has increased the total revenue for films. Significant growth in the retail market for DVDs and videos was evident in Western Europe as DVD penetration took off.

UK film industry

In 2003, cinema admissions were down nearly 5 percent, mirroring a 5 percent decline worldwide. This could be due to the absence of special revenue boosters such as a Harry Potter or James Bond movie. The share of domestic films in the UK’s gross box office receipts declined from 21 percent in 2002 to 16 percent in 2003. 
                                            
Despite lower admissions, more films (423) were released in the UK in 2003. Not surprisingly, US films dominated the UK media market, with comedy continuing to be the most popular genre, taking a 30 percent share of the gross box office in 2003.

Distributors spent nearly 13 percent more on advertising their films in 2003, due in part to the increase in the number of film releases. There was also continued expansion in the exhibition sector with 60 additional cinema screens, although the number of screens per 100,000 individuals continues to be one of the lowest among the filmed entertainment markets. After increasing for four consecutive years, box office take declined in 2003.

Due to its filmmaking expertise and film-friendly environment, the UK continues to be regarded by international filmmakers as one of the best places in the world to make a film. It has world-class talent, both in front of and behind the camera, as well as outstanding studios and facilities.

DVD sales continued to climb, with sales of 145 million units in 2003 compared with 90 million units in 2002. The total value of video and DVD sales rose by 18 percent to GBP2,421 million.

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